"Infrastructure is instrumental when it comes to linking local businesses with their global growth opportunities. This paper shows that, by making this link, the transport network can act as a catalyst for regional economic growth. Using a novel approach, we find that firms in regions with a more developed transport infrastructure are better placed to benefit from positive growth opportunities than those in regions with a less well-developed transport network. This advantage is most pronounced in times of economic slack—making a better transport network a key ingredient for economic recovery. It is against this background that the recent slowdown in infrastructure investment in Europe is worrisome. But it is through this channel (among others) that the substantial ramp-up of activity by the European Investment Bank is expected to foster growth and enhance competitiveness in Europe."

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